The world could see a second wave of tariff wars when Donald Trump takes office in January this year. The US president-elect has threatened BRICS countries, including India, with a 100 percent tariff if they undercut the US dollar or replace it with another currency for international transactions. His comments follow a BRICS meeting in October to promote non-dollar transactions. The BRICS grouping includes Brazil, Russia, India, China, South Africa and other countries.

In a scathing online post this morning, Trump said he would not stand idly by as the BRICS turn away from the dollar.

“The idea that the BRICS countries are trying to move away from the dollar while we watch is over. We demand from these countries a commitment neither to create a new BRICS currency nor to support another currency to replace the powerful one.” They will face 100% tariffs and must expect to withdraw from selling in “We will say goodbye to the wonderful US economy,” said the Republican leader, who won a decisive victory in last month’s presidential election.

Read: How Trump’s new tariff policies may affect Asian economies, including India

The president-elect suggested that the BRICS countries could find another “idiot,” but the group would not be able to replace the dollar with another currency in international trade. “You can find another “idiot!” There is no chance that the BRICS countries will replace the US dollar in international trade, and any country that tries should say goodbye to America,” Trump said.

BRICS and dollars

The BRICS countries – which now include Egypt, Iran and the United Arab Emirates – discussed expanding non-dollar transactions and strengthening local currencies at a summit in Kazan, Russia, in October.

The October summit adopted a joint statement on “strengthening correspondent banking networks within BRICS and enabling settlements in local currencies in line with the BRICS cross-border payments initiative.”

Read: How China’s new policies aim to circumvent Trump’s tariffs

However, Russian President Vladimir Putin pointed out at the end of the summit that no alternatives have yet been created to compete with the Belgium-based financial messaging system SWIFT.

India has also spoken out against dedollarization. In October, External Affairs Minister S. Jaishankar said this was neither part of India’s economic policy nor the country’s political or strategic policy. But in cases where trading partners do not accept dollars or when problems arise due to trade policies, workarounds are being sought, he had said.

Trump, tariffs and India

India’s tariff regime has ruffled Trump’s feathers in the past, as have Brazil and China. Its tariff plan for 2025 includes the concept of reciprocity towards protectionist regimes. A month before the election, Trump made it clear that this was the most important element of his plan to make the US “extraordinarily rich.”

Read – “India’s biggest tariff collector” will retaliate if he is elected to power: Trump

“Reciprocity is a word that is very important in my plan because we generally do not impose tariffs. I started this process, it was so great, with the vans and the small trucks etc. We really don’t charge any fees. China will charge fees.” “Brazil is a big pioneer,” he said in October.

“The greatest country of all is India,” he had claimed, while also praising Prime Minister Narendra Modi and India-US relations.

“I mean, I think they probably charge more than China in a lot of ways. But they do it with a smile. he said at the Detroit Economic Club.